Cancer Research UK has insured around 2,800 members of its defined benefit pension scheme through a £280m buy-in with Standard Life.
The deal was completed in March. It covers more than half of the Cancer Research UK Pension Scheme’s liabilities, valued at £402.5m as of 31 March 2024, according to the charity’s most recent annual report.
Roger Cooper, a director at Pi Partnership and chair of the Cancer Research UK Pension Scheme’s trustee board, said the charity and the trustees had been targeting a full scheme buy-in by 2032.
“I am delighted that, with the support of our advisers and the backing of the charity, the trustee board has achieved this major step towards the eventual winding-up of the scheme ahead of its original target.”
Alex Oakley, bulk annuity transaction manager at Standard Life, explained that the insurer had worked with the pension scheme’s adviser, Mercer, to develop a “bespoke” bulk annuity proposal to address “the unique needs of the scheme and the trustees”.
He added: “This was supported by the scheme itself, which had undertaken careful preparation before the transaction, and had a clear set of objectives which meant our team could focus on their priorities and efficiently secure member benefits.”
Maurice Speer, a partner in Mercer’s risk transfer team, said: “With such high demand from insurers for this scheme, we shortlisted insurers from the outset based on specifically defined selection criteria. A key consideration was insurers’ ESG credentials, their ability to offer a range of complex benefits, and member experience post buy-in.
“With more insurers in the market, defining selection criteria upfront has become increasingly important.”
The Cancer Research UK Pension Scheme is a signatory to the Sustainability Principles Charter for bulk annuity providers, which was launched in January 2024.
LCP provided investment advice and Sackers was the legal adviser to the pension scheme.
Standard Life is the headline sponsor of Cancer Research UK’s Race for Life event series, with the insurer’s staff having entered more than 1,500 events and raised £200,000 for the charity.
